Coin Edition -
- Ripple CTO highlights recent SEC legal setbacks amid FTX’s KYC controversy.
- FTX’s strict KYC checks have led to creditor rejections due to mismatched financial records.
- Bitcoin payouts to FTX creditors will be based on a lower valuation than the current market price.
FTX’s intensified KYC verification process has sparked controversy among creditors, with some facing rejections due to discrepancies in reported holdings. This situation has fueled broader concerns about exchange transparency and user rights in the crypto community, particularly as Ripple’s CTO highlighted the recent legal challenges faced by the SEC.
What, and I cannot stress this enough, the f*ck?! https://t.co/NYX9Sn7Bvk— David "JoelKatz" Schwartz (@JoelKatz) June 28, 2024
David Schwartz, posted on X about the frustrations faced by creditors. Yet another user expressed disbelief after FTX allegedly revoked their KYC status for having more funds on the platform than in their bank accounts. This move has sparked criticism, with many users calling it unreasonable and counterproductive.
Additionally, Daniel Sempere Pico, highlighted a specific issue regarding Bitcoin payouts. According to his post, FTX creditors are set to receive $16,871 per BTC, which is less than its current market value of $61,792. This discrepancy stems from FTX’s bankruptcy filing valuation on November 11, 2022, illustrating a stark contrast in payout expectations versus current market rates.
Bitcoin is worth $61,792 — unless you’re an FTX creditor.They will be paid back $16,871 per BTC, the price at which the company filed for bankruptcy on November 11, 2022.Keep your bitcoin off exchanges, folks. pic.twitter.com/j0wHsnwKwi— Daniel Sempere Pico (@BTCGandalf) June 27, 2024
The situation underscores growing concerns within the crypto community about exchange transparency and user rights. FTX’s stringent KYC policies, aimed at compliance and security, have raised concerns due to their impact on creditors who may have shifted funds between accounts and platforms over time.
In response to mounting criticisms, FTX has urged affected creditors to provide supplementary documentation to verify the origin and movement of their funds. This includes historical bank statements or verified statements from other cryptocurrency exchanges like Binance, as long as they contain comprehensive KYC details and asset balances in USD.
According to data, Bitcoin (BTC) is currently priced at $61,365.72, with a trading volume reaching $22,007,748,417.00 on the last day. Over the past 24 hours, Bitcoin has seen a price increase of 0.53%. However, it has also experienced a decline of -3.57% over the past 7 days.
The post Ripple CTO Joins Criticism of FTX’s Strict KYC Measures appeared first on Coin Edition.